465: How to Set Your Fees Correctly - Christina Byrne

How to Set Your Fees Correctly

Episode #465 with Christina Byrne

You have control over your fees. But are you setting them the right way? If you're not sure, today’s guest will help you find out. Kirk Behrendt brings back Christina Byrne, ACT’s Director of Operations, to share where dentists go wrong in setting fees, how to get team support, and ways to respond to patients’ concerns. And remember, never apologize for the prices you set! If you're ready to confidently set your fees, listen to Episode 465 of The Best Practices Show!

Main Takeaways:

You and your team need to understand the value of your dentistry.

Communicate that value to patients with verbal skills.

Don't raise your fees in a reactionary way.

Compare your fees to other practices.

Never apologize for your fees.

Quotes:

“The inherent problem [with fee structures] is that we don't look at what it actually costs to provide that service to the patient, and we’re just picking a fee out of the air because it sounds good or looks good or we don't want the patient to complain about it. But we don't take into account all that is involved in that procedure.” (3:11—3:32)

“One day, the doctor might be sitting there, and the lab bill crosses his or her desk, and they're like, ‘Oh my gosh, the lab fee is so high! Let's raise our crown fee.’ That's such a reactionary way to do it and not really thinking about what's involved.” (5:46—6:04)

“Most of our doctors are doing high-end work. And you have to consider, ‘Am I spending time talking to specialists? Am I in the lab myself, in my own lab, in my office, articulating the models and doing all of this?’ So, all of that plays into it. And yes, the lab fee does too. But it shouldn't be a reaction to the lab fee. That shouldn't even be a part of it. That, you should have already thought of before and incorporated into the fee, and the time that's involved, all the materials, everything that you're doing, and also looking at what is appropriate in your area.” (6:08—6:48)

“Even if you tell me 50% of your practice is PPO, that still gives you 50% opportunity to get your full fee from the other patients who aren’t.” (7:42—7:51)

“If you think about your schedule, you have your highest-compensated team members doing the work for pennies, basically. I'm talking about your hygiene team. And oftentimes, what happens — even if you're completely fee-for-service, I will find this too — is that doctors are hesitant to raise their hygiene fees because they are fees that people see often. So, they are considered what we would say inflexible fees, where you don't want to raise them every other month, and you don't want to raise them by $20 or $30 for every exam, prophy, and bitewings. But you should do something to get them incrementally up to at least the 60th to 70th percentile because you're losing on that procedure.” (9:10—10:01)

“[An inflexible fee] means that you want to be careful about how you're increasing that fee because it is a fee that a patient sees every six months. So, you don't want to raise it every six months. Some fees, you can do that to get yourself up to a higher level. And you also have to be careful about how much you raise it. Because let's say your hygiene fees, you raise each one of them by $20. That could be a $60 to $80 increase for the patient, and we have to be mindful of that. We have to think about, ‘What is that going to look like to the patient?’ So, I'm all for doing those inflexible fees incrementally. And again, that's your exam, it’s your prophy, it’s your bitewings, it’s your fluoride, the things that patients see on an every-six-months basis or so.” (10:12—11:01)

“Your flexible fees, that's where you have room to really make some tangible differences and really increase the potential impact to your practice. So, if my crown fee is in the 40th percentile today at $900 and I want to get to the 60th percentile, that means increasing it to $1,199. I would say go for it because, chances are, your patients are not having a crown every six months.” (11:02—11:31)

“[Patients don't run when you raise a flexible fee]. And if they do, then those patients are probably not a good fit for you anyway.” (12:24—12:31)

“You have to have your team behind you. Because ultimately, what's going to happen is they're going to hear the fee, the patient is, and then they're going to ask, ‘That's a lot of money. Why is it so much money? Why did Doctor raise his fees?’ So, your team has to be equipped with that verbal skill to answer the question confidently and not just say, ‘I don't know.’” (13:20—13:42)

“One of the biggest pieces that we can change immediately, and it’s not even just a word, it’s a mindset, is don't even say “fee” anymore. Call it an investment. The patients are making an investment in their health, and I think that's a huge, huge shift that your team can pick up immediately and start using.” (14:55—15:16)

“Patients don't know what a beautiful crown is supposed to look like. They wouldn't even know when they're looking at the X-ray if there's a huge opening in the margin. So, we need to tell them that. We need to explain, ‘The reason that this crown is so beautiful and it’s going to last so long is because I used the best lab, who uses the best material, and I have that scanner where I can get pretty close to perfect match on what your prep looked like, and how we’re making this crown fit.’” (15:45—16:14)

“One thing I like to show teams is showing the fees and where you actually fall. So, when you fall in the 40th percentile, I will ask the team, ‘Okay, so, are you providing 40th percentile procedures and care for your patients and services?’ And oftentimes, the answer is, ‘No, we’re giving a lot! We’re doing a lot.’ ‘Okay. So, what percentage do you feel like you're providing?’ And that's a good way to get the team to understand, ‘Oh, now, I get it. We are investing in the best technology. We are using the more expensive lab. But we use them because they're better. And Doctor did send us to that course. So, yeah, it is worth it. We are worth 80th percentile.’” (18:18—19:07)

“As the coach, we hear, ‘I'm really frustrated. My team doesn't understand. I wish that they would do X, Y, Z.’ But you haven't told them. You haven't sat down in a team meeting, and discussed it, and given them that why. You know the patient needs the why to accept the treatment, and your team needs the why to be able to present it. So, we have to give them that benefit and give them all the tools so that they feel confident having those conversations.” (25:01—25:32)

Snippets:

0:00 Introduction.

1:38 Christina’s background.

2:47 The inherent problem with fee structures.

5:16 Why fees tend to be messy.

8:25 Inflexible and flexible fees.

11:59 Equip your team with verbal skills.

13:44 Create value for your patients.

17:24 Change your team’s mindset about value.

19:44 Fee breakdown and response exercises.

23:28 Train your team to deal with obstacles.

26:26 Keep your team up to date with regular meetings.

28:51 Last thoughts.

30:24 Why you need a coach.

Reach Out to Christina:

Christina’s email: christina@actdental.com 

Christina’s social media: @actdental

Resources:

National Dental Advisory Service: https://wasserman-medical.com/shop/product/national-dental-advisory-service-2022-fee-report-book/

Beat the Heart Attack Gene by Dr. Bradley Bale and Amy Doneen: https://bookshop.org/books/beat-the-heart-attack-gene-the-revolutionary-plan-to-prevent-heart-disease-stroke-and-diabetes-9798200045747/9781681620220

Christina Byrne Bio: 

Christina Byrne has been involved in dentistry since 1985. Over the years, she has held many positions on the dental team, including dental assistant, business office, and dental hygienist. Christina’s extensive knowledge of the front office and clinical procedures is a great asset, and she loves to impart her knowledge to guide dental teams do the best they can to achieve a Better Practice, Better Life!